www.iva.co.uk

Hi, I took out an IVA a year ago and all was going fine. However I have accumalated some debt on an MBNA card (not part of the orginal IVA) in the last few months. Basically I am getting divorced and have had little choice. MBNA want it paid back by June and they are (now) aware of my existing IVA. the debt is about £11500 and I have managed to save about £3500 so far. I have not mentioned this to my debt management (debt matters) company. not sure what to do now, I have no other debt as had hoped to be debt free at the end of the IVA. I have no assets left to sell. Should I try to come up with a solution with MBNA, I can probably afford £250-£300 per month now although until my divorce is finalised I am not too sure where I satnd. Should I tell Debt Matters.

I woud really appreciate any help.

Thanks

Chris

Hi chris

How on earth did you get hold of a credit card when you were already in an IVA? Do you mean that you owe £11,500 on this card?

You will need to tell your IP about this immediately, and I suspect that this will constitute grounds for the IVA failing. You cannot avoid telling Debt Matters, as how have you been funding the monthly MBNA repayments within your rigid IVA income and expenditure?

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

For further details contact me at http://www.melaniegiles.com and view my IVA blog at: http://melaniegiles.blogs.iva.co.uk

Is this a card that you had prior to the IVA and did not declare ?
Under an IVA you are not allowed to take out any credit[unsecured] unless you have your IPS permission.To do so may force them to fail your IVA.
Melanie is right in stating that you should be unable to fund the payments on this card let alone save £3500 towards it.
You need to speak to your IP straight away and come clean.